Section 2(47) CPA 2019 defines Unfair Trade Practice as any trade practice that adopts an unfair method or deceptive practice for promoting the sale or supply of goods/services.
Common Unfair Trade Practices
- False advertising — claiming a product has qualities it doesn’t have
- Bait and switch — advertising at a low price, then pushing a more expensive product
- Fake discounts — inflating MRP to show a false discount
- Pyramid schemes — enrolling members with promises of commission
- Spurious goods — selling fake or counterfeit products
- Unsolicited goods — sending goods without order and demanding payment
The CCPA: India’s Consumer Watchdog
The Central Consumer Protection Authority (CCPA) can:
- Issue orders to discontinue misleading ads
- Impose penalties up to ₹10 lakh (₹50 lakh for repeat offences)
- Order corrective advertisements
- Recall defective products
Influencer Liability
Celebrities and influencers who endorse products can also be held liable for misleading endorsements — the CCPA issued guidelines in 2023 requiring clear disclosure of paid partnerships.